According to a report released by crypto data analysis company, Messario.io, Crypto traders are backing out of other assets they own to accumulate more Bitcoin.
According to the chart released, altcoins were crumbling against in Bitcoin in a 24 hour run in the crypto market. Ethereum was one of the significant digital assets that crumbled against Bitcoin when it lost 1.90% against the leading cryptocurrency. Litecoin, Bitcoin Cash, Bitcoin SV, XRP are some of the other digital assets that recorded massive losses against Bitcoin.
Chainlink and Tezos are currently experiencing a 103 YTD, but they were the biggest losers against the leading digital asset after they both went down around four percent or more. However, most of the coins performed well against the US dollar even though they all incurred significant losses against Bitcoin.
Bitcoin Halving Reason For Altcoin Dumping
Altcoins suffered a massive decline ahead of the much anticipated Bitcoin Halving that is scheduled to happen in the next few days. The leading digital asset will go through a block reward deduction, which will occur on May 12, and it will see the block reward reduced to 6.25. After the mining happens, miners would be able to earn 900 BTC per 24 hours instead of the previous 1,800. Investors will hope bitcoin makes a massive surge after the halving takes place as the halvings that took place previously followed the same trend.
Dan Morehead, CEO of Pantera Capital, has said that the leading digital asset makes a price surge across 446 days after the having event takes place. If this narrative is something to go by, then the price of Bitcoin should be able to make the much-needed surge to reach $115,212 by August 2021. “When the number of bitcoins [miners] receives and thus sell is cut in half, it’s got to have an impact. That is what has happened in both past cycles. The magnitude of the impact is proportional to the scale of the decrease in supply.” he added.
Bitcoin halving makes investors interested in the digital assets; as a result, of its price surge in the wake of the halvings like it happened on both occasions. Investors are now of the opinion of using Bitcoin to amass long term profits with other altcoins a means to acquire short term profits. Bitcoin continues to dominate the digital asset market, rising rapidly above the $9,000 mark.